UK house prices: Rents near London's Nine Elms area have fallen five per cent due to increase in supply

 
Shruti Tripathi Chopra
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Oversupply hits rental market in Nine Elms (Source: Getty)

Rents near London's Nine Elms area are falling following a stream of properties coming on the market, according to a new study.

Developers are currently building over 20,000 homes south of the Thames. The increase in supply has led to rents per square foot falling over five per cent between the first quarter of 2016 and the same period in 2017, according to data provider LonRes.

“Properties within new developments are becoming an increasingly dominant force within SW8,” said Marcus Dixon, head of research at LonRes told the Financial Times. “Anecdotal evidence suggests new homes are putting pressure on tired rental stock within the second-hand market.”

Read more: Uh oh. London records the lowest rate of house price growth for five years

Last week, a study by London Central Portfolio (LCP) found that renters are choosing older homes over new builds.

This has led to an oversupply in prominent London areas and has driven down letting prices.

The availability of flats to rent in the stretch between Battersea and Nine Elms has increased by 28.1 per cent as 22,000 new units come to market, the study found.

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